What is one method used to control the ability of firms to capture monopoly profit in Canada
A)government purchase of products produced by monopolists
B)government distribution of a monopolist's excess production
C)enforcement of antitrust laws
D)regulation of firms in highly competitive markets

Question

Quizplus · Accepted Answer

Antitrust laws are designed to prevent monopolies and promote fair competition in the market. In Canada, this includes the Competition Act, which prohibits anti-competitive practices such as price-fixing and abuse of dominant market position. By enforcing these laws, the government can prevent firms from capturing monopoly profits and ensure a level playing field for all competitors. The other options, government purchase and distribution of products, as well as regulation in competitive markets do not directly address the issue of preventing monopoly profits.

What Is One Method Used to Control the Ability of Firms